Hines and Oaktree Lease 650,000 Square Feet in Orange County this Year
Hines, the privately owned real estate investment firm has completed 650,000 square feet of leasing this year in its Orange County Portfolio. In connection with the new lease agreements, Hines partnered with Oaktree Capital Management, L.P. (Oaktree), a leader among global investment managers specializing in alternative investments.
Ray Lawler, Hines Managing Director and leader of the firm’s Orange County development and investment office, commented, “The exceptional leasing velocity our team has been able to achieve is a direct reflection of the increasing demand for high-quality, well-located properties, the appeal of our strategic capital upgrades, and our deep broker and tenant relationships.”
Hines and funds managed by Oaktree are focusing on leasing their other properties in Orange County. “Our vacancies include 50,000 square feet in Alton Corporate Plaza in Irvine; 120,000 square feet in 1750 E. Fourth Street in Santa Ana; and 200,000 square feet in Brea Place in Brea,” commented Mark Jacobs, managing director with Oaktree. “To drive leasing efforts, we are planning to execute nearly $15 million of capital improvements over the next six months. In addition, we are actively working to secure an anchor tenant for our new office development at 17850 Von Karman that will include 242,000 square feet over nine floors,” he added.
Noteworthy leases of 2014 include Rockwell Collins and Spireon, both leasing space in Alton Corporate Plaza, as well as Nobel Biocare, leasing in Yorba Linda. Others include Harvest Christian Fellowship and The Enthusiast Network (TEN), formerly known as Source Interlink Media, both leasing in Irvine. Hines has also completed leases with other companies such as Alta Resources, HomeStreet Bank, Manufacturers Bank, The Outsource Group, and Veolia Water.
“Orange County’s office market remains strong where building owners have delivered large, efficient blocks of space in brandable, quasi-creative, ideally-located buildings,” stated Joe Bevan of Jones Lang LaSalle, who represented Hines along with Wade Clark. He continued, “Hines and Oaktree have figured it out and attracted several of the largest tenants in 2014 to its office projects.”
Currently, Hines manages 391 properties totaling 161 million square feet, which includes 89.1 million square feet for third parties. The company has offices in 115 cities in 18 countries, and controlled assets of approximately $28.2 billion, making Hines one of the largest real estate organizations in the world.
